ashtondav
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Post by ashtondav on Aug 9, 2016 12:00:13 GMT
You think so!
I think "we're still open for business and delivering results over the business cycle"
Tends to beat:
"we're shutting up shop".
It's like a plc losing money in any one year and declaring itself bankrupt
I was with ZOPA during 2008 and I still made money. My equities went down 30% in that year. ZOPA investors in 2008 did not run for the hills, despite suffering reductions in interest much more than would be the case now with Safeguard covering some bad debt. Also in those days bad debt was not allowable against tax. 10% gross, 4% net and a 40% taxpayer achieved 0% post tax.
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Post by westonkevRS on Aug 9, 2016 12:44:05 GMT
You think so! I think "we're still open for business and delivering results over the business cycle" Tends to beat: "we're shutting up shop". It's like a plc losing money in any one year and declaring itself bankrupt... All of these comments are true, especially this by ashtondav , it's a little ridiculous really. So there are some preliminary discussions being had about potential alternatives that would allow for continued trading albeit where lender returns would be reduced. The resolution event was conceived a long time ago, and is well overdue a review. But please don't ask me for timescales or likely outcome, it is too early and personally I'm not involved in the discussions. Kevin.
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jnm21
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Post by jnm21 on Aug 9, 2016 12:45:25 GMT
Also in those days bad debt was not allowable against tax. 10% gross, 4% net and a 40% taxpayer achieved 0% post tax. I'm trying to learn about investments, so can you confirm that with a 10% interest & 6% bad debt loss (i.e. net 4%), the tax used to be based on the gross (i.e. 40% of 10%, so 4%)? Now tax is based on the net, so it would be 1.6%, leaving a 2.4% post tax?
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registerme
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Post by registerme on Aug 9, 2016 12:54:02 GMT
jnm21 this is probably the most comprehensive discussion about bad debt and tax relief hereabouts.
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ashtondav
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Post by ashtondav on Aug 9, 2016 12:56:59 GMT
Also in those days bad debt was not allowable against tax. 10% gross, 4% net and a 40% taxpayer achieved 0% post tax. I'm trying to learn about investments, so can you confirm that with a 10% interest & 6% bad debt loss (i.e. net 4%), the tax used to be based on the gross (i.e. 40% of 10%, so 4%)? Now tax is based on the net, so it would be 1.6%, leaving a 2.4% post tax? Yes, trawl through the long thread if you need detail.
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Post by westonkevRS on Aug 9, 2016 17:38:22 GMT
Also in those days bad debt was not allowable against tax. 10% gross, 4% net and a 40% taxpayer achieved 0% post tax. I'm trying to learn about investments, so can you confirm that with a 10% interest & 6% bad debt loss (i.e. net 4%), the tax used to be based on the gross (i.e. 40% of 10%, so 4%)? Now tax is based on the net, so it would be 1.6%, leaving a 2.4% post tax? Hi jnm21RateSetter is also not the place or thread to worry about this. As long as the Provision Fund remains robust, you only ever get a single return, there is no bad debt to worry about. Feel free to discuss this on the forum somewhere, but I wouldn't want RateSetter newbies getting confused... Kevin.
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jnm21
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Post by jnm21 on Aug 9, 2016 19:02:29 GMT
Point taken Kevin.
I was hoping for a response to my previous (hopefully more relevant) point in here:
Do you have any options available to investors like myself who cannot simply pop into the office?
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jonah
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Post by jonah on Aug 9, 2016 20:39:10 GMT
Well, they have done investor evenings, including one in Manchester.
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Post by westonkevRS on Aug 10, 2016 6:18:00 GMT
Point taken Kevin. I was hoping for a response to my previous (hopefully more relevant) point in here: Do you have any options available to investors like myself who cannot simply pop into the office? We typically have two "lender drinks" evenings. One in London, and another "up North", which I think was in Manchester last time. But the web site has a lot of information, including a lot of data and the ability to download the loan book. If there's anything missing always happy to propose it, although obviously we won't go into detail about tax treatment of losses as it isn't relevant to RateSetter. Kevin.
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woodie
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Post by woodie on Aug 11, 2016 8:07:16 GMT
Westonkev says:
" The resolution event was conceived a long time ago, and is well overdue a review. "
That's not a red flag you are waving there is it Kev?
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ashtondav
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Post by ashtondav on Aug 18, 2016 7:21:29 GMT
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jnm21
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Post by jnm21 on Aug 18, 2016 21:50:36 GMT
Pity you have to register to read that.
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Post by westonkevRS on Aug 19, 2016 8:06:48 GMT
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hendragon
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Post by hendragon on Aug 19, 2016 8:25:38 GMT
ty for the link Kev. Nice to find a journalist with understanding of the p2p sector.
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jnm21
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Post by jnm21 on Aug 20, 2016 0:09:43 GMT
Thanks westonkevRS that worked perfectly (had read so far, then hit the wall & CBA registering). I wonder if reading that could help me nudge my folks (that an the new '1.5 dressed as 321' account)?
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